CME Group has launched repo on corporate bonds and mortgage-backed securities (MBS) on its dealer-to-client (D2C) request-for-quote (RFQ) trading platform, BrokerTec Quote.
US corporate bonds began trading yesterday, 20 May, with the remaining products expected to be live by the end of next month. CME Group’s US credit futures will begin trading on 17 June.
Adding US Euro and Sterling corporate bonds and MBS on BrokerTec Quote creates a fuller product suite with US and Euro repo on all major government bonds that currently trade on the platform.
From launch, clients will have the ability to orchestrate their risk management and fixed income financing needs from one platform.
BrokerTec’s dealer-to-dealer (D2D) central limit order book (CLOB) repo platform transacted $600 billion average daily notional volume (ADNV) of repo last year.
“In today’s dynamic and complex financial landscape, navigating the fixed income markets for mortgages and credit presents unique challenges for clients who need sophisticated tools to manage their exposure and achieve their financing needs,” said John Edwards, global head of BrokerTec.
“We have been actively expanding BrokerTec Quote to cover repo on all major government bond markets in recent years. The addition of corporate bonds and MBS is a natural complement to our core offering and follows significant demand from clients.”